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Would you really want $10,000 gold? Peter Hug gives his 2021 outlook
$10,000 gold price would mean the end of the financial system, as we know it, said Peter Hug, Global Trading Director of Kitco Metals.
“Picture yourself in a position where the entire financial system is collapsed, and there is no medium of exchange, and you have a gold bar, and you need gasoline for your generator, or you need food. And you think if you went to your neighbor’s house and you offered him a one ounce gold bar, he would give you gasoline or food? I think not,” Hug said. “Why would you want gold to be at $10,000 or $20,000 an ounce? Everything else you own, your real estate, your 401K, would all be decimated.”
On gold’s outlook for 2021, Hug remains constructive, adding that the metal has never really deviated from its long-term bull market.
“This week, we had the Fed meeting...Powell didn’t say a lot, but he said enough, he said he’s concerned in the short-term, he thinks first quarter 2021 could be problematic until a vaccine takes hold. He re-iterated that the Fed would be accommodative up to 2023,” he said. “You can’t get a better green light than that from a central bank.”
